Anchoring

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Anchoring

The act of basing an investment decision on irrelevant information. For example, if one bases the value of a stock on its price a year ago, one is practicing anchoring. This can be a dangerous practice, but it is also easy to do. Anchoring is a concept in behavioral economics, which states that people often make decisions based on their perceptions and feelings in addition to (and sometimes instead of) facts.
References in periodicals archive ?
At this moment, do these numbers of comments and reactions data play the role as the initially presented value of the anchoring effect theory [4]?
Research on the anchoring effect raises similar alarm bells.
This phenomenon is explained by the anchoring effect, that is, according to Palmeira and Srivastava, consumers use free anchors instead of discounted supplementary products.
Chen, "Study of anchoring mechanism and analysis of anchoring effect of fully grouted rock anchor in large-scale underground caverns," Rock and Soil Mechanics, vol.
In addition, working with a heterogeneous population makes it difficult to isolate the anchoring effect. For instance, people of different ages may value differently.
The anchoring effect may apply with equal force to per diem
Then, the concentrated loads are exerted on the rock elements in a contrary direction, which can simulate the anchoring effect of the bolts.
"Anchoring effect: How the mind is biased by first impressions." Psyblog.
And that's to take advantage of the anchoring effect, the fact that your top price makes the cheaper prices look palatable.
"A Literature Review of the Anchoring Effect." Journal of Socio-Economics, 40(1), 2011, 35-42.
Rickford argues that in our excitement about the social and identity elements in sociolinguistic variation we easily forget the anchoring effect of linguistic structure.
It argues that, as an empirical matter, loss of chance is an accurate way to describe sentencing error given the "anchoring effect" of the Guidelines on sentencing practices.